Monday, October 3, 2016

The failure of the Deutsche Bank should be the “leaders ” irresponsible” – the Observer

"I don’t know if cry or laugh when you see a bank that has made the speculation a business model that is put now in the position of the victim," said the minister to journalists, after last week the boss of Deutsche Bank have condemned the speculators for pushing the price of the shares of the bank down to low levels on record. The Deutsche Bank is in financial difficulties and will reduce thousands of jobs.

"The scenario are thousands of people who will lose their job. They will pay the price of the madness of the leaders irresponsible," said Sigmar Gabriel, who is also leader of the social democrats, who govern in Berlin with the conservatives of German chancellor Angela Merkel.

The bank decided to launch a restructuring, after a loss of seven million euros in 2015, which foresees the closure of about 200 branches in Germany until 2020 and the reduction of more than 9,000 jobs in the world.

Deutsche Bank is accused, like other large banks, have sold to investors before the start of the financial crisis of 2007/08, mortgage loans, which are loans that are converted into financial products, knowing that they were toxic.

last week, shares of Deutsche Bank fell to levels never before seen in its history at the Frankfurt stock exchange, in the face of rumors that the State refused to grant any assistance to the bank, threatened by a fine of record in the United States.

The Department of Justice, the american announced, on 15 September, the application of a fine of 14,000 million dollars to settle the litigation real estate raised at the beginning of the financial crisis in 2008.

The Deutsche Bank is seen as the main risk factor for the global financial system by the International Monetary Fund (IMF).